Microsoft will not raise full-time employee pay this year but plans to give full-time staffers promotions, bonuses, and stock awards.
The company blamed its slow first-quarter growth on economic concerns, which impacted consumer demand and corporate orders for its software and cloud services.
Read More: LinkedIn to cut 716 jobs and shut down Chinese app
Its cloud-computing business has also slowed after years of expansion.
The announcement comes as it has been investing heavily in OpenAI, the maker of ChatGPT, to integrate AI technology across its products.
Microsoft’s focus on AI is part of a larger attempt to move to a platform shift, necessitating key decisions about investing in its people, business, and future.
However, like other tech companies, the software titan has made job cuts.
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It announced plans to cut 10,000 jobs in January, its greatest layoffs in over eight years.
This trend has affected tech behemoths like Facebook owner Meta, Google parent Alphabet, Amazon, and Salesforce.
This year, the tech sector alone has slashed almost 192,000 jobs.
Earlier this week, Microsoft-owned LinkedIn announced the closure of its China-focused jobs app.
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It has also axed 716 global roles due to slower revenue growth and changing customer behavior.
LinkedIn’s jobs app in China, called InCareer, has struggled against local competitors.
The decision not to raise salaries for full-time employees this year clearly indicates Microsoft’s efforts to navigate a challenging economic environment.
Its focus on AI and the transition to a platform shift requires strategic investments in the future while being mindful of economic headwinds.
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